Russia 110601 Basic Political Developments

Business, Energy or Environmental regulations or discussions

Gazprom, Polymetal, Rosneft, VimpelCom: Russian Equity Preview

http://www.bloomberg.com/news/2011-05-31/gazprom-polymetal-rosneft-vimpelcom-russian-equity-preview.html
By Anna Shiryaevskaya - May 31, 2011 10:28 PM GMT+0200

The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close.

The 30-stock Micex Index (INDEXCF) rose 1.3 percent to 1,666.30. The dollar-denominated RTS Index advanced 1.2 percent to 1,888.60.

OAO Gazprom (GAZP RX): Alexander Ananenkov, deputy chief executive officer of Russia’s natural-gas export monopoly, will speak to reporters in Moscow about the company’s reserves, production and pipeline projects. Gazprom advanced 0.4 percent to 204.56 rubles.

OAO Polymetal (PMTL RX): Silver futures for July delivery advanced as much as 2.4 percent to $38.765 an ounce. Polymetal, Russia’s largest producer of the metal, rose 2.4 percent to 540.70 rubles.

OAO Rosneft (ROSN RX): Oil climbed on signals the European Union will approve aid for Greece, bolstering the euro against the dollar. Russia’s biggest oil producer rose 0.2 percent to 242.22 rubles.

VimpelCom LTD (VIP) : The owner of Russia’s second- biggest mobile phone operator is due to post first-quarter earnings. VimpelCom climbed 2.1 percent to $14.08 in New York.

To contact the reporter on this story: Anna Shiryaevskaya in Moscow at [e-mail];

To contact the editor responsible for this story: Will Kennedy at [e-mail].

Regulator wants Russian IPOs to stay at home

http://www.bne.eu/dispatch_text15683

bne
June 1, 2011

Dmitry Pankin, the new head of the Federal Service for Financial Markets, told an investment forum on Tuesday that the regulator is seeking levers to stem the flow of Russian companies making their way overseas to raise equity capital and make them list domestically instead, reports Prime Tass.

Presently, the Russian financial market lacks certain conditions that would stimulate the companies to make domestic offerings, he said, adding that the service has to make this market more transparent and comfortable. At present, Russian companies prefer to make IPOs abroad, where they can offer only 25% of shares under current legislation.

Russian Railways plans stg Eurobond top-up by end-Aug

http://www.reuters.com/article/2011/06/01/russianrailways-eurobond-idUSLDE75007E20110601
2:37am EDT

SOCHI, Russia, June 1 (Reuters) - Russian Railways plans to place a top-up of an outstanding sterling Eurobond before the end of August, the deputy head of its corporate finance department said on Wednesday.

"The size will depend on demand, with absolutely the same parameters, same currency, same coupon. But it was 350 million pounds ($576 million) and we will now issue 200-300 million," Pavel Ilichev told reporters.

The state-run railway monopoly placed its debut sterling Eurobond worth 350 million pounds in March. [ID:nLDE72H14X]

Ilichev also said on the sidelines of a railway forum the company plans to issue rouble bonds worth between 10 billion and 20 billion roubles ($358-$716 million) in the second half of the year. ($1=.6076 Pound) ($1=27.93 Rouble) (Reporting by Gleb Stolyarov; writing by Maria Kiselyova; editing by Lidia Kelly)

Russian Railways to offer Eurobond

http://www.rbcnews.com/free/20110601110414.shtml

      RBC, 01.06.2011, Sochi 11:04:14.Russian Railways intends to offer additional Eurobonds denominated in British pounds sometime in June-August of this year, Pavel Ilichyov, deputy head of the company's corporate finance department, said today.

Sberbank mulls buying back own shares from market

http://www.rbcnews.com/free/20110601103235.shtml

      RBC, 01.06.2011, Moscow 10:32:35.Sberbank, Russia's largest bank, could repurchase its own shares in on-market trading to bolster their price, the bank's Deputy CEO Anton Karamzin said during a conference call late Tuesday.

      The management of Sberbank is discussing such an option with its major shareholder, the Central Bank of Russia. The parameters of the buyback have not been determined yet, Karamzin added.

Central Bank to sell 7.6% in Sberbank in September

http://www.rbcnews.com/free/20110601114335.shtml

      RBC, 01.06.2011, Moscow 11:43:35.The Central Bank of Russia (CBR) expects to sell its 7.6% stake in Sberbank in September, RBC Daily reported today, citing CBR First Deputy Chairman Alexey Ulyukayev. The arrangers of the offering will be shortlisted after June 20, he added.

      "The date of the offering could be postponed, but it will go off successfully. The bank has a stable financial state, and Russia's macroeconomic forecasts are favorable. Moreover, sovereign funds have an excess of money now," Mark Rubenstein, head of IFK Metropol research department said.

      Sberbank is an attractive asset for investors because its return on equity exceeded 30% under IFRS, National Bank Trust analyst Yuliya Safarbakova said. The bank is expanding business aggressively, including its profitable retail business. The lender's IFRS report for January-March released on Tuesday overshot the consensus forecasts, she added.

Vimpelcom reports higher net profit in Q1

http://www.rbcnews.com/free/20110601121528.shtml

      RBC, 01.06.2011, Moscow 12:15:28.The net profit of Vimpelcom Ltd. increased 55% year-on-year to $590m in January-March under U.S. GAAP, the telecommunications company said in a statement today.

      Vimpelcom Ltd. was established in April 2010 as a result of a merger between Russia's VimpelCom and Ukraine's Kyivstar.

Rostelecom BoD greenlights purchase of 40% in Bashinformsvyaz

http://www.rbcnews.com/free/20110601103626.shtml

      RBC, 01.06.2011, Moscow 10:36:26.The board of directors of Russian national telecommunications operator Rostelecom has approved the acquisition of a 39.8% stake in Bashinformsvyaz, a source at Rostelecom told RBC today.

      Bashinformsvyaz provides broadband Internet, television and wireline telecommunications services to corporate and household customers.

      According to media reports, Rostelecom signed an agreement to buy a 39.87% stake in Bashinformsvyaz for RUB 3.64bn (approx. USD 130m). Svyazinvest, which owns a blocking stake in Rostelecom, is expected to be assigned the government's 28.24% stake in Bashinformsvyaz.

Mail Group cancels contract with Yandex.Money

http://www.bne.eu/dispatch_text15683

Renaissance Capital

June 1, 2011

Event: Vedomosti reported this morning (1 June) that Mail Group had decided to cancel its contract with Yandex.Money. Now a Mail Group MMO games user can pay using either the Qiwi payment service or through Mail Group's own payment service, [e-mail]

Action: We reiterate our BUY rating and $48/share target price on Mail.Ru Group.

Rationale: In 2010 Mail Group generated $100mn, or 30.7% of its revenue, from MMO games, while commissions to payment systems are in the range of 2.5-5%. A change of payment system is likely Mail Group's attempt to cut costs by providing payment services through its own system or QIWI, which is 21.3% owned by the company. However, the impact from a reduction in costs is relatively low and this decision most likely reflects tightening competition between Yandex and Mail Group. We note that Mail Group also changed its search engine in 2009 from Yandex to Google. Shares in Mail are currently trading at 20.7x and 14.2x 2011E and 2012E EV/EBITDA multiples, respectively.